Canmore’s proposed 2014 capital budget was presented this week and members of the budget committee directed administration to find ways to save approximately $360,000.
The cut to the $17.2 million capital plan is intended to reduce the need to support that budget through taxes and as such, pass on a two per cent tax savings to ratepayers next year.
Mayor John Borrowman proposed the direction on Tuesday (Nov. 19), saying there is room in the capital budget for savings.
“If you are able to find that much in savings to offset the transfer (from the operational budget) that will decrease the tax rate to three per cent,” said the mayor.
Administration proposed a five per cent municipal tax increase as part of the 2014 operating budget, which includes a $920,000 transfer to the capital budget.
However, budget committee member Colleen Brennan pointed out that council’s reserves policy sets out a goal to have at least $6 million in reserves and lowering taxes does not achieve that goal.
“You have to recognize your goal to build reserves is not possible,” she said. “I am conscious about the tax increase and I am fine with the recommendation, but I want everyone to be aware it seems to be inconsistent.”
The capital budget includes $6.3 million in projects for utilities, which is a stand alone model, and $10.9 million in other Town projects across departments.
The majority of the 2014 capital budget, or 69 per cent, is made up of seven major projects.
There is $3.9 million for an upgrade to the wastewater treatment plant and $500,000 for a new water well at Pumphouse 1; $3 million for the Town’s contribution to flood projects; $1.7 million for the street and drainage rehabilitation program; $1.4 million to upgrade the old library and $900,000 for renovations inside to turn it into an arts centre and $500,000 to begin redevelopment of the old daycare site.
Manager of planning Alaric Fish said funds for the daycare site are more of a placeholder until council decides what to do with the five-acre piece of land.
The land is being considered by administration as a potential way to generate revenue through redevelopment in order to help pay for the mounting municipal costs of flood mitigation work.
“The $500,000 is to service the site and prepare it for sale if that is what the public and council finds acceptable,” Fish said. “At this point, it is not tying anyone to a final decision of what would happen on those lands.”
Manager of engineering Andy Esarte, who is working exclusively on flood recovery, explained there is still a lot that is unknown at this point about 2014 flood mitigation projects.
“When we are looking at what long-term work looks like – we don’t know yet,” Esarte said. “There is a significant amount of debris that is needed to be captured on a number of creeks.”
However, he proposed a $3 million budget as the Town’s contribution to that process. There is also $2 million proposed in 2015, and Esarte said the total $5 million is expected to be 10 per cent of the overall cost to establish long-term mitigation, with the province contributing the other 90 per cent.
The street and drainage rehabilitation program is a continuation of work that has occurred on roads in South Canmore over the past several years. In 2014, administration is proposing drainage rehabilitation to address ponding near 10th Street and Sixth Avenue, near the Drake Inn, Willow Point and on Three Sisters Drive. In South Canmore, the work is expected to include Eighth Avenue, Seventh Avenue and Fifth Avenue.
The work at Seventh Avenue near the Roundhouse is connected to a $420,000 utilities water main replacement.
“Right now the school does not have the fire flow that is required in our engineering design standards,” explained manager of public works Andreas Comeau.
The new well at Pumphouse 1 is needed to replace a shallow well at that site, according to Comeau.
The pumphouse is located near the railway tracks across from Elevation Place. During construction, the well was monitored closely because the site of the $39 million multiplex was known to have hydrocarbon contamination. Comeau said benzene and hydrocarbons were detected in the 18 metre deep well.
“Since the surface work was completed and the facility at Elevation Place is fully operational, we are still having the odd detection of hydrocarbons in that well,” he said. “We are continuing to monitor that and are relying solely on the other well.”
The deeper well at the pumphouse is 44 metres in the ground and the proposal is to dig a second well the same depth, as two wells are needed to meet the water licence and demand.
